Following a broad market uplift, Solana’s native token, SOL, recently experienced a significant price increase, climbing nearly 25% in early May 2025. Despite this strong move, SOL has encountered resistance around the $180 level. However, underlying data from both on-chain activity and derivatives markets indicates potential for further upside, suggesting the cryptocurrency could soon aim for the $200 mark and beyond.
SOL currently holds the position as the fifth-largest cryptocurrency by market capitalization. Beyond its valuation, Solana stands out in crucial on-chain metrics, particularly in its Total Value Locked (TVL) within its decentralized finance (DeFi) ecosystem.
Solana’s Dominance in DeFi TVL
With a TVL reported at $10.9 billion, Solana’s DeFi sector significantly surpasses the combined TVL of the entire Ethereum Layer 2 ecosystem, which includes prominent networks like Base, Arbitrum, and Optimism. Even the BNB Chain, closely integrated with major platforms like Binance and Trust Wallet, trails behind Solana in this key metric. Recent periods have shown substantial growth in TVL for specific protocols within Solana, such as Raydium DEX (+78%), Jito (liquid staking, +41%), and Marinade (+56%) over the last 30 days.
Increasing Network Activity and Revenue
Growth in the DeFi space doesn’t automatically translate to increased demand for a network’s native token, especially on platforms known for extremely low transaction fees. Yet, Solana has demonstrated robust fee generation. Over the past month, Solana recorded $43.3 million in fees, comparing favorably to Ethereum’s base layer fees of $24.9 million and Tron’s $51.9 million during the same period, according to data from DefiLlama. Both the revenue generated by Solana’s decentralized applications and the fees collected on the network have shown consistent growth over recent weeks, nearing their peak levels seen in the last three months. This trend signals a positive outlook for SOL’s demand, particularly when considering that approximately 65% of the SOL supply is currently staked, effectively reducing the available circulating supply.
Derivatives Market Reflects Growing Interest
Indicators from the derivatives market support the view of increasing interest in SOL. The annualized funding rate for SOL perpetual futures is approximately 8%, falling within the neutral range of 5%-10%. This suggests a healthy level of interest from traders in maintaining long positions without excessive speculation. While the current price remains well below its all-time high of $295 reached on January 19, 2022, the sustained increase in network activity points towards a potential move towards $200 in the near future, potentially positioning it to outperform competitors.
Potential Future Catalysts
Several factors could serve as catalysts for Solana to reach new price peaks. The potential approval of a spot Solana ETF in the United States is frequently cited as a significant driver. Additionally, the inclusion of SOL in state-level strategic digital asset reserves could provide further impetus. Analysts also highlight Solana’s growing role in the tokenization of traditional assets, an emerging sector expected to unlock considerable value and potentially benefit the SOL ecosystem substantially.
Jason Walker, aka “Crypto Maverick,” is the energetic new member of cryptovista360.com. With a background in digital finance and a passion for blockchain, he makes complex crypto topics engaging and accessible. His mix of analysis and humor simplifies volatile market trends. Outside work, Jason explores tech, enjoys spontaneous road trips, and American cuisine. Crypto Maverick is ready to guide you through the ever-changing crypto landscape with insight and a smile.